Exhibit 10.21
TRANSITION SERVICES
AGREEMENT
This TRANSITION SERVICES AGREEMENT
(this “ Agreement ”), dated as of April 1, 2004,
is entered into by and among ICG Telecom Group, Inc., a Colorado
corporation (“ ICG ”) and Level 3
Communications, LLC, a Delaware limited liability company (“
Level 3 ”).
WHEREAS , ICG (and its parent company) and Level 3 have
entered into an Asset Purchase Agreement, dated as of April 1, 2004
(the “ Purchase Agreement ”), relating to the
purchase and sale of the certain assets and the assumption of
certain liabilities relating to the Business;
WHEREAS , pursuant to the Purchase Agreement certain
Numbers used in the Business will not be transferred or assigned to
Level 3 until after Closing;
WHEREAS , after the Closing and in order to provide
service under the Customer Contracts which have been conveyed and
assigned to Level 3, Level 3 will require for a limited period of
time the use of services to be delivered by ICG to Level 3 using
certain Numbers that have not yet been transferred or assigned to
Level 3;
NOW, THEREFORE
, in consideration of the mutual
covenants and agreements contained herein and for other good and
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as
follows:
ARTICLE I.
DEFINITIONS
Capitalized terms used but not
otherwise defined herein shall have the meanings specified in the
Purchase Agreement. In addition, the following capitalized
terms shall have the meanings set forth below:
“ A Numbers ”
shall mean those Numbers delineated as such on tabs 5, 6 and 7 of
the spreadsheet attached as Exhibit B .
“ B Numbers ”
shall mean those Numbers delineated on tabs 5, 6, and 7 of the
spreadsheet attached as Exhibit B .
“ ICG Underlying
Service Contracts ” are those agreements, understandings
or contracts necessary to provide the ICG Transition Services,
including, without limitation, those agreements delineated on
Exhibit A hereto.
“ Number Termination
Notice ” shall mean a notice delivered by Level 3 to ICG,
whereby Level 3 notifies ICG that Level 3 no longer needs ICG
Transition Services with respect to those Numbers delineated in
such notice.
1
“ POP ” is a
point of presence used by ICG in the operation of the Business, as
delineated on tabs 2 and 3 of the spreadsheet attached as
Exhibit B .
“ Retained
Numbers ” shall mean those Numbers, the use of which, as
of the Closing, has not yet been transferred or assigned to Level
3, and which are temporarily retained by ICG pursuant to the terms
of the Purchase Agreement and this Agreement.
“ Retained POP ”
shall mean a POP, the use of which has not yet been terminated
pursuant to Section2.1 hereof.
“ Retained Uncovered
LATA ” shall mean an Uncovered LATA, the services within
which have not yet been terminated pursuant to Section 2.1
hereof.
“ Services ”
shall mean, collectively, ICG Transition Services and Migration
Services, as hereinafter defined.
“ Uncovered LATA
” is an uncovered Local Access and Transport Area in which
ICG operates the Business, as delineated on tab 4 of the
spreadsheet attached as Exhibit_B .
ARTICLE II.
PROVISION OF SERVICES BY ICG
Section
2.1.
ICG Transition Services . ICG shall provide to
Level 3, with respect to any Assumed Customer Contract, access to
and use of the Retained Numbers and any goods and services provided
to ICG related thereto (or which ICG has the right to obtain under
the terms of its existing contractual arrangements) in connection
with the Business, including, without limitation, those services
described on Exhibit C (collectively, the “ ICG
Transition Services ”) as of the date of the Purchase
Agreement during the period (the “ ICG Service Period
”) from the Closing Date until, with respect to each Retained
Number, each Retained POP, and each Retained Uncovered LATA, the
first to occur of the following (each an “ Effective
Date ”):
(a)
with respect to a Retained Number, 15 days after delivery of a
Number Termination Notice delineating such Retained Number;
provided, however, the ICG Service Period for any Retained Number
used by ICG in providing services to a customer under an Excluded
Customer Contract shall be deemed to end (and the Effective Date
shall be deemed to have occurred) as of the Closing Date, without
further notice from Level 3; and
(b)
with respect to a POP, 30 days after the delivery of a Number
Termination Notice for the last Retained Number corresponding to
such POP; provided, however, that the ICG Service Period for any
POP used by ICG solely in providing services to any customer(s)
under any Excluded Customer Contract(s) shall be deemed to end (and
the Effective Date shall be deemed to have occurred) as of the
Closing Date, without further notice from Level 3.
2
(c)
with respect to an Uncovered LATA, 30 days after the delivery of a
Number Termination Notice for the last Retained Number
corresponding to such Uncovered LATA; provided, however, that the
ICG Service Period for any Uncovered LATA used by ICG solely in
providing services to any customer(s) under any Excluded Customer
Contract(s) shall be deemed to end (and the Effective Date shall be
deemed to have occurred) as of the Closing Date, without further
notice from Level 3.
(d)
the effective date of termination of the ICG Service Period, as set
forth in written notice from Level 3 to ICG.
Each of Level 3 and ICG acknowledge and agree
that upon receipt by ICG of any Number Termination Notice, ICG will
have the right to terminate (subject to the terms of this Section
2.1 and Exhibit D hereto) the Services with respect to the
applicable Number (as set forth in such Number Termination Notice),
POP (if such Number Termination Notice requests termination of the
last Retained Number corresponding to such POP), or Uncovered LATA
(if such Number Termination Notice requests termination of the last
Retained Number corresponding to such Uncovered LATA).
Section
2.2.
Pass Through Rights . The ICG Transition
Services shall be provided by ICG to Level 3 in substantially the
same manner and on substantially the same basis (including as to
policies, procedures, practices and timeliness) as the goods and
services provided to ICG under existing contractual arrangements
relating to the Business. Without limiting the generality of
the foregoing, ICG agrees to perform the ICG Services to the
standards and service levels set forth in the respective Assumed
Customer Contracts (“ SLA Standards ”). If
and to the extent that ICG is or becomes entitled to exercise any
rights or remedies from underlying carriers or subcontractors used
to deliver the ICG Transition Services, and if and to the extent
ICG does not promptly enforce such rights and remedies, ICG hereby
assigns such right and remedies to Level 3 with respect to the ICG
Transition Services. ICG agrees to enforce and prosecute such
rights and remedies upon consultation with Level 3 with respect
thereto.
Section
2.3.
SLA Remedies . In the event ICG
fails to perform the ICG Transition Services to the SLA Standards,
ICG shall reimburse Level 3 in cash in an amount equal to any
payments made or service credits granted by Level 3 to customers
under Assumed Customer Contracts relating to such failure to
perform the ICG Services to the SLA Standards. Without
limiting the foregoing remedy, Level 3 may, at its option, perform
any ICG Transition Services which ICG fails to perform and ICG
shall cooperate, and shall cause its employees and agents to
cooperate, with Level 3 in such performance of the ICG Transition
Services.
Section
2.4.
Actions with Respect to Certain Agreements . Except as otherwise
consented to in writing by Level 3, which consent may be withheld
or granted in Level 3’s sole discretion, during the ICG
Service Period:
(a)
With respect to each ICG Underlying Service Contract that will or
may expire during the ICG Service Period, ICG shall take such steps
as are necessary to continue such ICG Underlying Service Contract
or otherwise replace the services provided thereunder until the
expiration of the ICG Service Period for the respective Number,
POP, or Uncovered LATA, as applicable.
3
(b)
ICG shall (i) perform in all material respects its obligations
under each ICG Underlying Service Contract, and (ii) not settle,
release or forgive any claim or litigation or waive any right under
any ICG Underlying Service Contract.
(c)